Members of the Budget Committee are urging the government to address non-taxed areas and revenue leakages to bridge budgetary gaps that have left key priorities underfunded for years. The committee presented these proposals during discussions with officials from the Ministry of Finance, led by State Minister Hon. Henry Musasizi on January 24, 2024.
The committee, led by Chairperson Hon. Patrick Isiagi, urged the government to recover revenue collections from the Entebbe Express road toll, citing a discrepancy between the monthly collections of Shs3 billion and the reported annual revenue of Shs7 billion.
Hon. Geoffrey Ekanya pointed out revenue leakages in gaming, lottery, mining, and other sectors, suggesting potential revenue of Shs4 trillion to finance unbudgeted services.
The committee emphasized the need to tax gold, the leading foreign exchange earner, expressing dissatisfaction with its tax exemption. Hon. Paul Omara urged the ministry to recover unpaid taxes from Bujagali Energy Ltd and scrutinize unprofitable operations of Uganda Airlines.
MPs recommended that government use these recoveries to finance critical areas such as the operationalization of the 10 new cities, externally funded projects lacking government contribution, tourism roads, and the upgrade of Akii-Bua Stadium for the African Cup of Nations in 2027.
Finance Minister Musasizi acknowledged plans to expand development financing options, citing the Public Investment Financing Strategy. He clarified that the public debt stands at Shs86.3 trillion, with domestic arrears at Shs2.7 trillion. Musasizi highlighted a three-year digital strategy by URA to automate tax processes and reduce revenue leakages.
